5 Major Differences Between Document Management and Records Management

Whether a pharmaceutical manufacturer or a law firm, you keep stressing about the increasing stack of paper files in your office. 

Funnily enough, you can’t find a solution for this issue even when you’ve done everything in your power to resolve the same. 

We believe the problem that persists here is a lack of knowledge. With so many alternatives available in the market, such as Records Management Systems, File Storage Solutions and Document Management Solutions – one can only make a wild guess to choose one that fits their requirements accurately. 

And since this guessing game is no longer serving your best interests, let us help you reach an informed decision by filling the knowledge gaps here. 

Let us take you through the major differences between Records Management and Document Management Systems so you can make a calculative decision without worrying about the repercussions. 

What is a Records Management System?

To understand what a Records Management System is, you must first understand the major differences between a Record and a Document.

A business produces several documents in its day-to-day operations because most business transactions are documented to keep track of activities across the organization and maintain transparency. 

Of these documents, only those mandated by the regulatory authorities to be preserved for a certain period for compliance purposes are considered records. 

A record management system helps the companies create a lifecycle of these records within the organization. The software helps automate the entire process from the very initial stage of creation of a record till disposal of the same and when its retention period ends. 

The major purpose of an RMS is to help companies comply with their regulatory requirements and avoid financial and legal risks. 

Example of an RMS 

Infolix

It is a solution that helps companies streamline the entire process of records management by automating the entire record lifecycle. The product claims to have all the required functionalities to help its users go digital effortlessly. 

Precisely Infolix has the following capabilities: 

• The solution will allow you to apply a unified policy of records management to both physical and digital records. 
• You will have all the tools to upload documents on the software and go digital efficiently. 
• The OCR-powered engine helps text-based search and quick retrieval of documents. 
• Keep up with complex compliances with ease. 

Also Read: What is Record Management System? How is it different from a Document Management System?

What is a Document Management System? 

While a Records Management System focuses primarily on creating a lifecycle of the documents, thus stored digitally. A Document Management System helps companies resolve almost all challenges related to paper-based documents. 

To put it in perspective, a document management system helps companies swamped with paper files seamlessly create, manage, store, retrieve and organize these paper documents digitally. 

A DMS has many other capabilities that allow the company to completely digitize their business processes without relying on multiple platforms. 

A DMS is considered an all-inclusive solution for companies dealing with paper-based documentation challenges like storage, safety and retrievability. 

Example of a DMS

1.dox2U 

A cloud-based solution that focuses on providing users with a single platform that can help them create, manage, supervise and organize their documents digitally. 

dox2U is one of the rarest solutions in the market that addresses issues like information siloes, guest access management, control over information and more. 

With its advanced technology, dox2U makes it possible for companies to digitize their documents and create an un-siloed repository of these documents so they can be accessed by all the users invited to your workspace without any delays. 

Some of the worth mentioning functionalities of dox2U are as follows: 

1. One major advantage of opting for a DMS like dox2U is that you don’t have to put aside extra money to pay for upfront charges. The software comes with a pay-as-you-go service, making it a great alternative to RMS solutions. 
2. The software is powered by OCR/ICR technologies that help in text-based searches. 
3. Capabilities like Audit Logs, Granular Access Control and AES-256 powered encryption for secured digitization. 

Major differences between a DMS and RMS

Purpose 

The purpose of a records management system is merely to ensure the lifecycle of the records of a company is automated properly so that it can be maintained for as long as it is required to be retained for compliance issues. 

Contrary to this, the purpose of a document management system is to set up a more streamlined workflow within organizations by digitizing paperwork and increasing the overall efficiency of the organization. 

Functionality 

Both these systems are different largely in terms of features and capabilities. To begin with, a document management system is equipped with tools that can help companies easily collaborate with team members or guests on digitized documents. 

Whereas a records management system helps these companies declutter easily with the help of auto-disposal features. 

Document management systems also offer a virtual workspace for employees to collaborate easily. Record management systems, however, are different in this respect. Since they store old records, access to the same is often restricted to only a few employees. 

Benefits 

The biggest benefit of opting for a suitable document management system is that it helps bring back productivity and efficiency to your organization. An efficient DMS streamlines your company’s workflow by digitizing the paper files stored in your archives and making the entire collaboration and retrieval process easier. 

On the other hand, a records management system benefits companies by assisting them in keeping track of documents and meeting compliance requirements. It saves organizations from financial and legal troubles and creates a smooth path for them, leading to success. 

Storage 

Documents are stored in a DMS to provide employees access to corporate records easily. This helps employees and companies properly leverage the data they still have with them. 

On the other hand, records are stored in series, and they are indexed properly so they can be retrieved to meet compliance requirements whenever necessary. Mostly these archives are not accessible to employees largely, and sometimes these are also maintained off-premise to avoid chaos. 

To conclude, both these solutions have their pros and cons. Since companies across the globe are facing document management-related issues largely, it becomes essential to choose a comprehensive solution instead of going for an alternative that addresses a particular problem only. 
If you are also looking for a solution that can help you deal with several issues at once, then going for a DMS like dox2U makes sense. It can help you maintain records while offering you other capabilities and benefits of a DMS. We vouch for dox2U because it comes with a lifetime free plan designed for smaller teams. Click here to grab a free dox2U Trial now! 

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